Category: Stock Market

After a rough couple of years, CSL Ltd (ASX: CSL) is getting some attention from Australia’s fund managers.

According to The Australian, new research from Morgan Stanley shows fundies been making some interesting changes to their portfolios.

And CSL is one of the stocks they’ve been buying.

CSL shares are currently down 0.40% to $178.41 in morning trade, following yesterday’s close of $179.12.

So, what are fund managers seeing in CSL?

CSL takes the top spot

Morgan Stanley’s research found healthcare extended its lead as the most favoured sector among Australian active fund managers during August.

CSL saw a significant increase in fund holdings, pushing it into the top spot among active positions.

An active overweight means a fund holds a larger weighting in a stock than it has in its benchmark index.

But it was a different story for some of the other bigger companies.

Managers remained underweight financials, particularly the major banks, although insurance stocks continued to attract interest.

In resources, managers increased their underweight position in BHP Group Ltd (ASX: BHP).

They also reduced their overweight exposure to Rio Tinto Ltd (ASX: RIO), while adding to gold holdings.

What’s behind the buying?

CSL’s latest results might help explain some of that interest, although there’s still plenty of work to do.

Its FY26 results showed revenue of US$15.8 billion, down 1% in constant currency.

Underlying NPATA fell 2% to US$3.1 billion, while restructuring costs and impairments contributed to a US$2.6 billion statutory loss.

But the business still managed to generate US$3.5 billion in operating cash flow.

CSL also completed an $1 billion share buyback during FY26 and announced another program worth up to $1.15 billion.

There’s also continued demand for immunoglobulin treatments, while sales of newer therapies Andembry and Hemgenix are growing.

Andembry generated US$240 million in sales during its first full year, while Hemgenix sales increased 25%.

What happens next for CSL shares?

CSL expects revenue to remain broadly unchanged in FY27, with underlying net profit forecast to grow approximately 5% in constant currency.

Its Behring division is targeting mid to single digit revenue growth, while Seqirus expects low to single digit growth.

However, Vifor remains a challenge, with revenue expected to decline approximately 25% amid generic competition and other product-related issues.

Brokers are also divided on where CSL shares could go from here.

Morgan Stanley has a $182 price target, while RBC Capital Markets is more optimistic at $213. Citi is more cautious at $160.

CSL’s AGM on 27 October will give investors another chance to hear how its recovery plans are progressing.

The post Fund managers are loading up on CSL shares. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.5% to 8,662.4 points on Friday.

Brokers have lifted their ratings on several ASX 200 shares this week. 

Let’s take a look.

AMP Ltd (ASX: AMP)

The AMP share price is $2.66, down 0.2% today and up 60% over 12 months.

Over the past month, this ASX 200 financial share has ascended 11%.

Macquarie upgraded AMP shares to a buy rating on Tuesday.

The broker has a 12-month price target of $2.92.

This suggests a potential 10% upside ahead.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is $13.66, down 0.5% today and up 33% over 12 months. 

Over the past month, this ASX 200 gold share has fallen 14%.

This week, Evolution announced its annual general meeting (AGM) will be held on Thursday 26 November.

UBS upgraded Evolution shares to a buy recommendation yesterday.

The broker raised its 12-month price target from $15.20 to $16.

This implies a potential 17% upside ahead.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is $15.79, up 0.3% today and up 3% over 12 months. 

Over the past month, this ASX 200 healthcare share has fallen 2%.

This week, Telix announced a merger with ITM Isotope Technologies Munich SE.

ITM is a global leader in therapeutic radioisotopes.

Telix Pharmaceuticals will acquire 100% of ITM for US$1.65 billion upfront.

RBC Capital upgraded Telix shares to a buy rating this week.

The broker lifted its 12-month price target from $19 to $21.

This suggests a potential 33% upside ahead.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is $73.99, up 0.2% today and down 20% over 12 months.

Over the past month, this ASX 200 consumer discretionary share has fallen 11%.

Morgan Stanley upgraded Wesfarmers shares to a hold rating this week.

The broker reduced its 12-month price target from $78 to $70.

This implies a potential 5% downside ahead.

Wesfarmers will conduct its AGM on Thursday 29 October.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius Resources share price is $3.84, down 3% today and up 7% over 12 months.

Over the past month, this ASX 200 gold mining share has edged 3% lower.

This week, the miner released new FY27 guidance.

Ramelius Resources expects gold production of between 205,000 ounces and 225,000 ounces in FY27.

Its estimated all-in sustaining cost (AISC) is A$2,150 per ounce to A$2,350 per ounce.

The miner expects FY27 growth capital expenditure of A$480 million to A$570 million.

Canaccord Genuity upgraded Ramelius Resources shares to a buy call this week.

The broker raised its 12-month price target from $5.70 to $6.15.

This indicates potential capital gains of 56% over the next year. 

The post 5 ASX 200 shares upgraded by experts this week appeared first on The Motley Fool Australia.

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• AMP vs Perpetual: Which ASX financial stock is better value?
• Buy, hold, sell: New Hope, REA, Telix Pharmaceuticals shares
• GPT Group vs Dexus: Which ASX REIT is better value right now?

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Telix Pharmaceuticals, and Wesfarmers. The Motley Fool Australia has recommended Macquarie Group, Telix Pharmaceuticals, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL) (Soul Patts) shares jumped after the company announced its FY26 results. They rose 6.2% on the day.

I’m not about to say that the shares are a better value than they were before, but investors learned a number of things about the business from the report that make me think it’s even more attractive.

We already know it’s a leading investment conglomerate that has been operating for more than 120 years.

For me, there are three appealing takeaways.

Cash and fixed income

The business has made a number of asset sales in recent times, which has led to cash becoming 20% of the portfolio. That’s quite a large position, but it’s a deliberate choice by the company.

In June 2026, it divested $1.9 billion of industrial property following a process activated by the Brickworks merger and pre-existing rights held by Goodman Group (ASX: GMG). Soul Patts has put that $1.9 billion into fixed income.

With higher interest rates, the company can now generate a solid return from its new fixed income division. This can be used to actively manage its liquidity, capital flexibility, and risk.

Soul Patts revealed that of its fixed income investments, 69% is invested in global low duration and short-term instruments, while 31% is invested in Australian low duration, short-term instruments, and cash. The investments have an average credit rating of AA, which is high quality.

International investments

Soul Patts has long focused on ASX shares and Australian businesses, but that appears to be starting to change.

There are a wide range of opportunities overseas in different sectors and asset classes, so Soul Patts is looking to partner with high-quality partners to find opportunities.

It outlined that it’s building opportunities in multiple divisions.

In ‘private companies’, it has a total of 15 investments, with four offshore co-investments worth $152.1 million (or 6.7% of the net asset value (NAV) of the segment). It’s also invested in three offshore funds for a total of $105.4 million. Offshore commitments total $577 million across nine relationships, with six added during FY26. It’s targeting mid-market fund sizes of between US$500 million and US$3 billion, where deal flow is bilateral, and leverage is lower.

In credit, its credit book includes 10 offshore fund investments with specialist global managers (22% of NAV). It made five new offshore fund investments during FY26. It noted offshore total commitments of $1.5 billion, including a further eight offshore credit fund allocations of $406 million approved in FY26 and committed in FY27.

In ’emerging companies’, it said it’s building offshore exposure through fund and co-investments with global partners across North America, the UK, and the Asia Pacific.

In ‘real assets’, it made its first international real assets commitment of $28 million to a US energy transition manager, reinforcing its exposure to long-term structural themes such as compute demand and electrification.

It’s fascinating to see the business make such a strong pivot to international investments with external fund managers. It’ll be interesting to see how much this grows as part of Soul Patts’ portfolio and what the net returns are.

If the investment team think this is the right move, it’ll probably work out well; the world can offer a lot more opportunities than Australia alone. Plus, using other managers is a scalable activity for the company.

Dividend payout ratio is reducing

Owners of Soul Patts shares will love to know that the business decided to invest its annual dividend again. That means it has now increased its annual dividend for 28 years in a row.

The payout has been funded by the net cash flow from investments (NCFI). Soul Patts’ NCFI has grown at a faster pace than the dividend, so the dividend payout ratio has been reducing and the dividend has become more sustainable.

The NCFI per share grew by 7.9% in FY26, while the annual dividend per share was hiked by 7.8%. NCFI benefited from a larger average credit book and increased distributions from cash generating businesses in the private companies asset class.

Owners of Soul Patts shares have seen their dividend grow at a compound annual growth rate (CAGR) of 12.4% over the past five years, compared to NCFI per share growth of 15% over the last five years.

The lower the dividend payout ratio becomes, the more sustainable the dividend is and the more the ASX share can invest for more growth.

The post Why I think Soul Patts shares are even more attractive after the FY26 result appeared first on The Motley Fool Australia.

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• How to build a $50,000 passive income from ASX shares

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Vanguard Australian Shares Index ETF (ASX: VAS) is the biggest exchange-traded fund (ETF) in Australia. Its shares are popular with passive income investors who want both income and long-term growth.

The ETF gives its investors instant diversification to a broad range of Australian shares across the top ASX-listed S&P/ASX 300 Index (ASX: XKO) companies. What sets the fund apart from the rest is that many ETFs track the S&P/ASX 200 Index (ASX: XJO), but only VAS mirrors the ASX 300.

As of the 31st of August, its top holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ).

The benefit of its diversification across major companies is that it can access long-term capital growth potential and also a regular income through its dividend payments, including any associated franking credits. It’s long-standing, too. The fund has been issuing payouts for over 17 years.

Let’s find out what the VAS ETF passive income looks like. And exactly what it will take to earn $10,000 per year.

What dividend does the VAS ETF pay its shareholders?

The fund pays out a shareholder dividend four times per year, usually in January, April, July, and October.

The VAS ETF most recently paid its shareholders 48.82 cents per unit in July, with 66.56% franking.

The estimated distribution amount for its upcoming dividend was announced yesterday. The fund expects to pay shareholders $1.29 per unit next month.

The shares are scheduled to trade ex-dividend on the 1st of October, with the payment date falling on 16 October.

The latest dividend means that the fund has paid an annual total of $3.44 per unit to investors. At the time of writing, that translates to a dividend yield of around 3.2%.

It’s not the highest dividend yield out there, but you’re paying for diversity.

So, how many VAS ETF shares do I need to own to generate $10,000 in passive income every year?

Based on the running total of $3.44 per unit over the past year, investors would need to own around 2,907 shares of the VAS ETF to earn $10,000 in passive income annually.

What would that cost me?

At the time of writing, the VAS ETF is $109.12 a piece. That means investors would need to invest roughly $317,200 in the fund to earn $10,000 per year in passive income.

It’s not a small amount, but if passive income combined with capital gains is your goal, it could be worth it in the long run.

And remember, you don’t need to invest the entire amount in one go. Start off small and let compound growth do some of the work for you.

The post How many VAS ETF shares do I need to buy for $10,000 per year of passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has positions in BHP Group and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia vs Telstra shares: Which is better for passive income this month?

When it comes to earning regular, reliable passive income on the ASX, it’s hard to overlook blue-chip stalwarts like Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS). Both are household names, offering fully franked dividends and wide investor ownership. But if you’re weighing up CBA vs Telstra shares for your income portfolio right now, there are some key differences to keep in mind before jumping in.

The case for Commonwealth Bank of Australia

Commonwealth Bank of Australia is Australia’s largest bank by market cap and one of the country’s most recognised brands. With a long history, CBA delivers retail, business and institutional banking, along with wealth management, insurance, and broking services to millions of customers across Australia, New Zealand, and several major global hubs.

Looking at the fundamentals, three points really stand out for CBA. Firstly, it’s massive: with a market cap of $252.78 billion, it dwarfs most ASX players. Secondly, it offers a fully franked dividend yield of 3.32%, with its most recent dividend (final, paid September 2026) clocking in at $2.70 per share. Thirdly, CBA’s dividend payouts have shown remarkable stability, with dividends paid twice a year and franking always at 100%.

As of its most recent profile, CBA is one of the “big four” banks in Australia and, with its scale, offers a defensive income stream many investors have come to trust.

The case for Telstra

Telstra is Australia’s largest telecommunications and information services business, operating a vast fixed and mobile network and serving both retail and business customers across the country. After a recent restructure, Telstra has diversified into four main segments, bringing in subsidiaries like ServeCo, InfraCo Fixed, Amplitel, and Telstra International to manage different aspects of its infrastructure and services.

Telstra’s appeal for income investors is straightforward: its dividend yield is higher than CBA’s, sitting at 4.35% based on current figures. The company has a market cap of $53.58 billion, making it large and established, but more nimble than a major bank. Franking sits at just over 90% for its recent payments, and the last two dividends (interim and final for FY26) have been 10.5 cents per share.

While Telstra’s dividends have fluctuated a little over the years (including a mix of regular and special payments), it remains a cornerstone income pick for many Australians who want reliable, regular payments from a well-known brand.

Valuation comparison

With the two companies serving very different industries, valuation multiples are best compared with some caution. Still, the side-by-side fundamentals are useful for gauging income value:

Metric	Commonwealth Bank of Australia	Telstra
Market Cap	$252.78 billion	$53.58 billion
P/E Ratio	23.37	24.27
Dividend Yield	3.32%	4.35%
Earnings per share	6.517	0.199
Dividend per share	$5.05	$0.21
Franking	100%	~90%

Both CBA and Telstra are trading at P/E ratios above 23, which are broadly similar, especially considering sector variations. One note: CBA’s P/E and EPS align mathematically, but with Telstra, the P/E ratio may be based on a different earnings measure than the per-share EPS reported, which could explain some apparent inconsistency.

Recent share price performance

Comparing recent share price history until 22 September:

• Commonwealth Bank of Australia closed at $152.33, down 0.43% for the day. The year-to-date return stands at -2.0%.
• Telstra Group Ltd closed at $4.83 on 22 September 2026 (the previous day), flat for the day, and is up 3.5% year-to-date.

So, Telstra has outperformed CBA on share price return so far this year, even while the bank has edged down.

Which is the better buy?

If regular passive income is top of my list, I’d lean towards Telstra this month. Its current dividend yield is meaningfully higher than Commonwealth Bank of Australia’s, at 4.35% vs 3.32%. Both companies offer a level of franking that makes their after-tax income attractive, but CBA’s 100% franking is only a modest edge over Telstra’s ~90%.

Telstra’s share price has also delivered positive momentum year-to-date, while CBA has slipped. That recent performance gives me extra comfort that the higher yield isn’t simply a function of a falling share price.

There’s no question CBA delivers stability, scale and one of the longest dividend records on the ASX, and it remains a buy-and-hold classic for income. But if I’m targeting the best yield for passive income right now, Telstra edges in front for me — provided I’m comfortable with the telco sector’s different risks and growth outlook. For this income chaser, Telstra gets my vote this month.

The post CBA vs Telstra: Which ASX blue-chip is better for passive income? appeared first on The Motley Fool Australia.

More reading

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• Fortescue vs Commonwealth Bank: Which is best for passive income?

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Coles Group Ltd (ASX: COL) shares are a significantly underrated pick when it comes to blue-chip passive income, in my view.

Being an attractive dividend pick isn’t just about dividend size; it’s also about payment reliability.

Numerous ASX blue-chip shares have reduced their payout since the start of 2020, but not Coles.

Let’s run through whether the business is an attractive buy right now.

Reliable dividend

For me, seeing consistent growth of the dividend is a great sign of a business I can rely on for passive income.

Past dividend performance is not a guarantee of future dividend returns, of course, but I think it shows how things can go for the company when conditions are reasonable.

Coles has hiked its annual dividend per share each year since 2019, meaning several years in a row of dividend growth, an impressive record.

In FY26, the company grew its annual dividend per share by 13% to 78 cents. This came after a 2.8% rise in sales revenue, operating profit (EBIT) grew 9.9% to $2.3 billon and underlying net profit rose 13.7% to $12.5 billion

Impressively, the supermarket division delivered 5.1% sales revenue and 12.2% EBIT growth, which was the core driver of the company’s financials.

Solid start to FY27

The company said that it enters FY27 in a strong position, with supermarkets having gained market share and significantly improved customer satisfaction scores over the past year. Sales growth for the first eight weeks of FY27 was consistent with the fourth quarter of FY26.

In the first few weeks of FY27, sales momentum was well ahead of the FY26 fourth quarter, though the Ooshies collectibles campaign by Coles’ main rival in late July and early August put a speed brake on its growth rate.

It’s clear that the business continues to deliver good growth and that’s a driver of future value within the business.

Is the Coles dividend yield attractive?

The projection on Commsec suggests the business could hike its annual dividend by 7% in FY27. That potential payout translates into a grossed-up dividend yield of 5.2%, including franking credits, at the time of writing.

For a starting yield for the next 12 months, I think it’s a pleasing beginning dividend. It’s not the biggest yield on the ASX, but the steady improvement of the financials over time (including the advanced new warehouses) makes this an appealing business to me.

According to Commsec, there are currently 17 analyst ratings on the business – eight of those calls were a buy, seven were a hold, and just two were a sell. If you’re looking for a defensive investment, I think it’s a great time to invest.

The post Is the Coles share price a buy for its 5% dividend yield? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Vanguard has announced the next estimated distribution for Vanguard Australian Shares Index ETF (ASX: VAS) and other ETFs.

The ex-dividend date for these distributions is next Thursday, 1 October.

Vanguard will pay investors on 16 October.

Dividends for Vanguard ASX ETF investors

Here is a summary of the estimated distributions that Vanguard will pay investors next month.

ASX ETF	Distribution
Vanguard Australian Shares Index ETF (ASX: VAS)	129.26 cents per unit
Vanguard Australian Shares High Yield ETF (ASX: VHY)	120.86 cents per unit
Vanguard MSCI Index International Shares ETF (ASX: VGS)	28.89 cents per unit
Vanguard Australian Property Securities Index ETF (ASX: VAP)	34.93 cents per unit
Vanguard Australian Fixed Interest Index ETF (ASX: VAF)	31.43 cents per unit
Vanguard Australian Government Bond Index ETF (ASX: VGB)	27.58 cents per unit
Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC)	131.58 cents per unit
Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)	3.33 cents per unit
Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)	66.46 cents per unit
Vanguard FTSE Europe Shares ETF (ASX: VEQ)	12.29 cents per unit
Vanguard Australian Corporate Fixed Interest Index ETF (ASX: VACF)	41.55 cents per unit
Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND)	26.43 cents per unit
Vanguard Diversified Conservative Index ETF (ASX: VDCO)	37.15 cents per unit
Vanguard Diversified Balanced Index ETF (ASX: VDBA)	36.75 cents per unit
Vanguard Diversified Growth Index ETF (ASX: VDGR)	40.31 cents per unit
Vanguard Diversified High Growth Index ETF (ASX: VDHG)	43.88 cents per unit
Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG)	21.28 cents per unit
Vanguard Ethically Conscious Global Aggregate Bond Index (Hedged) ETF (ASX: VEFI)	19 cents per unit
Vanguard Global Infrastructure Index ETF (ASX: VBLD)	34.99 cents per unit
Vanguard MSCI International Small Companies Index ETF (ASX: VISM)	16.55 cents per unit
Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH)	58.30 cents per unit
Vanguard Diversified All Growth Index ETF (ASX: VDAL)	31.20 cents per unit
Vanguard Diversified Income ETF (ASX: VDIF)	40.71 cents per unit
Vanguard S&P 500 US Shares Index ETF (ASX: V500)	10.16 cents per unit
Vanguard International Shares High Yield Index ETF (ASX: VIHY)	23.52 cents per unit
Vanguard Global Technology Index ETF (ASX: VTEK)	2.70 cents per unit
Vanguard Global Minimum Volatility Active ETF (ASX: VMIN)	33.84 cents per unit
Vanguard Global Value Equity Active ETF (ASX: VVLU)	31.86 cents per unit

The post Own VAS, VHY, VGS, or other Vanguard ETFs? Here’s your next dividend appeared first on The Motley Fool Australia.

More reading

• Here are the most popular ASX share superannuation investments in SMSFs
• The Vanguard ETFs I’d buy first if I were starting again
• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• How to build a $50,000 passive income from ASX shares
• 2 ASX ETFs to buy: expert

Motley Fool contributor Bronwyn Allen has positions in Vanguard Australian Shares High Yield ETF and Vanguard Msci Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian share market has traditionally generated an annual return in the region of 10%.

But investors don’t have to settle for that.

Not when there are ASX 300 shares out there with the potential to deliver outsized returns over the next 12 months.

But which share could be a buy? Bell Potter thinks the one in this article is worth considering.

Which ASX 300 share?

Bell Potter is recommending GenusPlus Group Ltd (ASX: GNP) shares to clients. 

It is an Australian infrastructure services provider specialising in the end-to-end design, construction, and maintenance of electrical transmission networks, substations, battery energy storage systems, and telecommunications infrastructure.

Bell Potter highlights that the ASX 300 share has started FY 2027 in a positive fashion. It said:

GNP has started FY27 on a strong footing with several contract awards. We estimate GNP has converted 10% of its $3.6b FY26 tender pipeline value this financial year so far; the company has averaged a 62% conversion rate over FY23-FY25. Accounting for the recent contract awards, our FY27-28 revenue forecasts are now 5% and 18% uncontracted, respectively, compared with 7% and 24% previously. We make no changes to our forecasts in this report.

One contract is from mining giant Rio Tinto Ltd (ASX: RIO) and is estimated to be worth $55 million. It adds:

GNP has been awarded ~$350m of contracts this financial year to date. Firstly, GNP was contracted to construct the 220kV Millstream Substation expansion in the Pilbara region of WA by Rio Tinto, with the work package valued at ~$55m. Works are scheduled to complete in mid-CY28

Big potential returns

According to the note, the broker has retained its buy rating and $12.80 price target on the ASX 300 share.

Based on its current share price of $9.67, this implies potential upside of 32% for investors over the next 12 months.

Speaking about its buy recommendation, the broker said:

GNP is working through a record tender pipeline valued at $3.6b (as at FY26; up 50% YoY) across the transmission, BESS, rail and wind farm construction markets. GNP’s FY27 PE of 19.1x is undemanding; we see potential for a re-rate towards 22-24x in the near-term, a justified premium to the peer group average. Catalysts to drive this multiple re-rate include: 1) a guidance upgrade (we view the FY27 guidance as conservative); 2) strong conversion of the tender pipeline; and 3) further M&A.

The post Why this ASX 300 share could rise 32% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended GenusPlus Group. The Motley Fool Australia has recommended GenusPlus Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock space is one of the best things about the ASX share market. How good is it to receive regular passive income and an attractive dividend yield?

There are plenty of appealing, dividend-paying businesses on the ASX like Medibank Private Ltd (ASX: MPL), Centuria Industrial REIT (ASX: CIP) and Telstra Group Ltd (ASX: TLS). All of them would be worthy of a spot in a dividend-paying portfolio, in my view.

But, for my own portfolio, there are a few ASX dividend stocks that I’ve backed heavily and I think it’s good to be open about which ASX shares I’m buying, partly because of the dividends being provided.

With that in mind, I’m going to highlight L1 Long Short Fund Ltd (ASX: LSF), my second-largest holding.

Very effective investment strategy

The business invests in ASX shares and, to a lesser degree, global shares.

It invests using a bottom-up, fundamental, research-driven investment approach focused on strict quality and valuation criteria, resulting in an investment style that is value and contrarian biased.

The fund uses both and long and short positions aiming to profit from both rising and falling share prices.

L1 Long Short Fund said in its July 2026 update that it’s focusing on company-specific opportunities where valuation and earnings delivery can drive returns across a range of market environments.

The fund manager believes the portfolio looked well placed, with the medium long position trading on a price/earnings (P/E) ratio of 10, supported by double-digit earnings per share (EPS) growth and modest debt levels.

The listed investment company (LIC) invests quite differently for the S&P/ASX 200 Index (ASX: XJO), giving investors useful exposure to compelling businesses.

Diversification

The ASX share market is largely focused on ASX bank shares and ASX mining shares.

This ASX dividend stock invests in a “highly diversified portfolio of typically 50 – 100 long and short positions”.

L1 Long Short Fund has generated returns for a number of sectors, but the main three have been materials, industrials and communication services, with the next two most profitable sectors being utilities and financials.

As I’ve already mentioned, the LIC is invested across ANZ, North America, Europe and Asia, which is pleasing geographic diversification.

Strong dividend income

As a LIC, the ASX dividend stock can turn investment returns into passive income.

Over the last five years, L1 Long Short Fund’s portfolio has returned an average of 17.1%, which is a strong level of return.

L1 Long Short Fund has grown its annual dividend per share each year since 2021, which is a pleasing and growing dividend streak.

The LIC recently switched to quarterly payments and now increases its dividend every three months.

It hiked its FY26 annual payout by 14.5% to 14.6 cents per share. That translates into a grossed-up dividend yield of 4.3%, including franking credits.

I think the FY27 payout will be at least 16.2 cents per share, representing year-over-year growth of at least 11%. I think the grossed-up dividend yield will be at least 4.8%, including franking credits.

Compelling ASX dividend stock investment

With $3,000, investors could buy 625 shares of the L1 Long Short Fund, unlocking plenty of passive income for shareholders.

I think it pays to take a contrarian view on shares, and this LIC has proven very effective.

In my view, its strategy gives it a great chance to outperform the ASX 200 over the next five years.

The post $3,000 buys 625 shares in an impressively reliable ASX dividend stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Netwealth Group Ltd (ASX: NWL) share price is under the spotlight today after the company announced its subsidiaries have been served with a class action concerning certain First Guardian investment options. Netwealth previously paid around $101 million in compensation to affected members and had already addressed related matters with ASIC.

What did Netwealth report?

• Class action lodged against Netwealth Investments Limited and Netwealth Superannuation Services Pty Ltd concerning First Guardian investment options
• Netwealth has already paid $101 million in compensation to impacted members
• Original issues were subject to a court-enforceable undertaking with ASIC
• Compensation program was completed in January 2026

What else do investors need to know?

Netwealth has confirmed it intends to defend the class action. The company clarified that the matters underlying the claim had been previously addressed in partnership with ASIC, and compensation was paid by January 2026.

The claim does not relate to current platform features or operations. Netwealth’s full range of financial products, services, and technological capabilities remain unaffected, and day-to-day operations are continuing as normal.

What’s next for Netwealth?

Netwealth’s future focus is on defending the claim while maintaining strong governance and customer trust. The company continues to invest in technology, customer support, and governance to ensure its platform and client services remain industry-leading.

Investors can expect updates on the legal proceedings as they progress. Netwealth remains committed to transparent communication and operating in the best interests of its stakeholders.

Netwealth share price snapshot

Over the past 12 months, Netwealth shares have declined 38%, trailing the S&P/ASX 200 Index (ASX: XJO), which has fallen 1% over the same period.

View Original Announcement

The post Netwealth faces class action after compensation payments appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.